Additional Interest Rate
spreads which the Government allows on Small Savings Schemes like PPF, Senior
Citizen Savings Scheme, Sukanya Samridhi Scheme and NSC etc. are being
continued and included in the rates notified today.
From the year 2012-13, the interest rates on
various Small Savings Schemes (SSS) are recalculated and notified in the month
of March every year. These rates are applicable for the next financial
year. This is being done in line with the recommendations of the Shyamala
Gopinath Committee to ensure that the interest rates of Small Savings Schemes
are market linked.
Accordingly, as done in the previous years, the
interest rates for various Small Savings Schemes were due for recalculation in
March 2016. As notified on 16th February, 2016, instead
of annual resetting of interest rates for the next financial year, the interest
rates from now on will be reset every quarter based on the G-Sec yields of the
previous three months. Consequently, the interest rates for various Small
Savings Schemes were recalculated with reference to the G-Sec yields of
equivalent maturity for the months December 2015 to February 2016. Based
on this calculation, the interest rates on various Small Savings Schemes for
the 1stquarter of 2016-17 have been notified today. The rates of
interest on various small savings schemes for the First Quarter of Financial
Year 2016-17, on the basis of the interest compounding/payment built-in in the
schemes, shall be as under:
|
Instrument
|
Rate of interest w.e.f. 01.04.2015
to 31.3.2016
|
Rate of interest w.e.f. 01.04.2016
to 30.6.2016
|
|
Savings Deposit
|
4.0
|
4.0
|
|
1 Year Time Deposit
|
8.4
|
7.1
|
|
2 Year Time Deposit
|
8.4
|
7.2
|
|
3 Year Time Deposit
|
8.4
|
7.4
|
|
5 Year Time Deposit
|
8.5
|
7.9
|
|
5 Year Recurring Deposit
|
8.4
|
7.4
|
|
5 Year Senior Citizens Savings
Scheme
|
9.3
|
8.6
|
|
5 yearMonthlyIncome Account
Scheme
|
8.4
|
7.8
|
|
5 Year National Savings
Certificate
|
8.5
|
8.1
|
|
Public Provident Fund Scheme
|
8.7
|
8.1
|
|
Kisan Vikas Patra
|
8.7
|
7.8
(will mature in 110 months)
|
|
Sukanya Samriddhi Account Scheme
|
9.2
|
8.6
|
This is a formula driven process.
Further, as notified earlier, the additional
interest rate spreads which the Government allows on Small Savings Schemes like
PPF, Senior Citizen Savings Scheme, Sukanya Samridhi Scheme, NSC etc. are being
continued. The additional spread for these Schemes are 25 basis points
for PPF, 100 basis points for Senior Citizen Savings Scheme, 75 basis points
for Sukanya Samridhi Scheme, 25 basis points for five year time deposit, 25
basis points for National Savings Certificate and 25 basis points for Monthly
Income Scheme. These additional interest rate spreads are being continued and
are included in the rates notified today.
The quarterly revision of interest rates will
ensure that the interest rates under Small Savings Schemes are more dynamically
related to the current market rates, thereby enabling the Banks to move their
interest rates in line with current money market rates.
*****************
PIB
